Is Comcast (NASDAQ: CMCSA) getting ready to buy General Electric's (NYSE: GE) NBC Universal? Hard to say. According to our sister site DailyFinance, it looks like the rumor of this theoretical event might be just that -- a rumor, nothing more. Then again, maybe there's something to it.

It seems likely, though, that Comcast does want to clinch a deal with some big media company. Remember when Comcast wanted to buy Disney (NYSE: DIS)? Quite frankly, it wouldn't surprise me if it ends up taking NBC Universal off GE's corporate hands. But which group of shareholders would this benefit the most?

Netflix (NASDAQ: NFLX) did a spectacular job in Q1. The famous DVD-rental-by-mail entity issued its quarterly numbers on Thursday after the bell. On an adjusted basis, Netflix delivered 40 cents per diluted share. That represented bottom-line growth of over 70%. I guess movies truly are resistant to recessions, huh? Revenues advanced over 20%.

According to earnings.com, that 40-cent figure means that management destroyed expectations since Wall Street was looking for somewhere around 31 cents per share. I should point out, however, that I've noticed that some other sources listed the expectations as being a little higher than 31 cents. No matter, Netflix beat the bottom line.

The video pay-per-view business would probably be pretty good if almost every company in the world was not already in it. Starting with Apple (NASDAQ: AAPL) and running across a wide spectrum of firms all the way to the telecom companies and cable, video-on-demand subscription services are available to consumers in bunches.

Amazon (NASDAQ: AMZN), which already has a foothold in the business, is about to go back for more. According to The New York Times, "Customers of Amazon's new store will be able to start watching any of 40,000 movies and television programs immediately after ordering them because they stream, just like programs on a cable video-on-demand service." In other words, the customers will not have to wait for the files to download, which does not take all that long on most good high-speed connections.

The launch seems like an odd way to waste the time of Amazon's management. It really has nothing special to make its service stand out among all the others. So, why bother?

Amazon has had some skill doing well in businesses where others have not. It moved from selling books to offering everything from consumer electronics to DVDs online and has profited well from it. A number of other companies who have tried to get into the niche have failed.

Amazon may simply be launching a new VOD service because it can. It may be something that strengthens it bond with customers, but nothing more.

Douglas A. McIntyre is an editor at 247wallst.com.

While at the recent Digital Hollywood conference, I heard much talk about online video. And the main question was: How can you make money from it?

Well, Accenture (NYSE: ACN) is trying to find some ways. In fact, this week, the company agreed to purchase Origin Digital (the amount was not disclosed).

The privately-held firm calls itself a "global video applications service provider." That is, the company helps with the key elements of managing, syndicating and reporting digital content – across various platforms, such mobile, VOD, IPTV, broadband, and so on.

Accenture already has a Digital Media Service division. But, with Origin Digital, there will definitely be much more heft as well as opportunities for cross-selling.

All in all, this seems like a good fit for Accenture. After all, Corporate America realizes that online video has many benefits in terms of obtaining customers, education, and branding. Yet, it's a process that does require some deep domain expertise.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Movie-rental business Blockbuster (NYSE: BBI) reported earnings for the fourth quarter yesterday. They weren't bad; while the top line only managed an increase of just under 4%, net income on an adjusted basis more than doubled to 26 cents per share. For the full fiscal year, revenue was essentially flat, and the adjusted net loss widened to 71 cents per share versus a loss of 1 cent per share in the previous fiscal year. Those numbers, it seems, aren't so good.

And neither are the stats behind the flow of the green stuff. Operational cash flow declined for the quarter and was negative for the year. Free cash flow was flat for the quarter and negative for the year. In the previous year, both cash from operations and free cash flow were positive.

What do I think of Blockbuster? Not much. It's a competitor of Netflix (Nasdaq: NFLX), and it also competes against video-on-demand and pay-per-view services offered by cable businesses such as Comcast (Nasdaq: CMCSA). I know Blockbuster is trying to turn itself around, attempting to cut costs, restructure, and find its way in this era of new content-distribution models, but I just don't have strong confidence in its potential for long-term growth. Heck, I haven't stepped foot in a Blockbuster in a long time. Know why? There aren't any around me, and that wasn't the case many years ago. I actually use Redbox for my rental needs these days.

Blockbuster may have beaten estimates, but that doesn't mean I'm a believer. Maybe it will indeed turn around in the future, but I'll let other investors take their chances with this low-priced equity.

Steven Mallas owns none of the companies mentioned here.

Time Warner (NYSE: TWX) movie network HBO will begin testing an online video service. The new project would allow network subscribers to watch programming on their PCs or download them to watch later. According to The Wall Street Journal, "HBO is starting a trial of the service, called HBO Broadband, in Green Bay, Wis., the network says, and could roll it out more widely later this year."

While HBO's brand is well-known among cable subscribers, it is difficult to predict whether this will translate into a large audience online. The amount of premium content available over the internet is growing rapidly as companies like Netflix (NASDAQ: NFLX), Amazon (NASDAQ: AMZN), and Apple (NASDAQ: AAPL) enter the industry. In a field this crowded, newer competitors may have trouble finding audiences.

HBO does have one distinct advantage. Many of the programs on the network are produced for its viewers and are not available elsewhere. This large amount of original content may draw a substantial audience for the new distribution channel.

But the field is getting crowded.

Douglas A. McIntyre is an editor at 247wallst.com.